Understanding Construction Financing in the Beach Haven West Real Estate Market
Beach Haven West Real Estate
In the wake of Hurricane Sandy, there has been an unprecedented wave of new construction taking place in Beach Haven West. Much of this new construction is a result of storm damaged homes and vacant land caused by flooding. Typically, an old or damaged home will be demolished and a new home will take its place with modern amenities and raised well above base flood elevation. Building a new home in the Beach Haven West real estate market offers many notable advantages, however understanding construction financing is an essential component of the process as it differs from traditional lending practices. Therefore, understanding Beach Haven West real estate construction loans can go a long way to determining if building a new home is the right step.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.beachhavenwestrealestate.com | www.BuyLBI.com
Click here to search all homes for sale in Beach Haven West
Beach Haven West Real Estate Construction Loans
It is important to understand that lending rules differ between banks, and the rules and regulations for qualifying will vary greatly depending on one’s individual situation. Therefore, it is important to speak with a qualified mortgage professional to understand the best options that are available for you. That said, there are some general statements that can be made about Beach Haven West construction loans that can help answer some questions. For example:
- The number of loan products available depending if the home is a primary residence, a vacation property, or investment property.
- Many construction loans carry a higher interest rate and may be interest only with no payments made towards the principal loan balance
- Money is usually dispersed in payments, often known as draws, to the builder as the project progresses
Construction loans can be a gateway to a wise real estate investment in Beach Haven West however it is important to understand the limitations and regulations surrounding this type of financing. Building a new home can be an exciting and profitable endeavor, but one must be aware of all details surrounding construction financing before entering into such a project.
Buying a Home in the Beach Haven West Real Estate Market
Buying a home in Beach Haven West is a major financial investment and it is important to understand all the options available before entering into any transaction. Building a new home is but one of many ways to realize the dream of ownership, but it does offer many advantages. A new home will typically see a much lower cost of flood insurance as it will be raised above base flood elevation, it will offer modern up-to-date amenities and will typically have instant equity, being worth more than real estate market than the project initially cost. For more information about Beach Haven West Real Estate Construction Loans or the Beach Haven West real estate market in general, contact the Beach Haven West Real Estate Group and we will be happy to answer any questions you have.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.beachhavenwestrealestate.com | www.BuyLBI.com
Click here to search all homes for sale in Beach Haven West